Inflation targeting and IMF conditionality

This IMF working paper "Inflation targeting in the context of IMF-supported adjustment programs" by Mario I Blejer, Alfredo M Leone, Pau Rabanal, and Gerd Schartz argues that the IMF's traditional monetary conditionality - a ceiling on net domestic assets of the central bank and a floor on its net international reserves - should be adapted in IMF-supported adjustment programs with countries which have a framework of explicit inflation targets for the implementation of monetary policy.

This

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